Correlation Between Baoshan Iron and FSPG Hi
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By analyzing existing cross correlation between Baoshan Iron Steel and FSPG Hi Tech Co, you can compare the effects of market volatilities on Baoshan Iron and FSPG Hi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baoshan Iron with a short position of FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and FSPG Hi.
Diversification Opportunities for Baoshan Iron and FSPG Hi
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baoshan and FSPG is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech and Baoshan Iron is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baoshan Iron Steel are associated (or correlated) with FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and FSPG Hi go up and down completely randomly.
Pair Corralation between Baoshan Iron and FSPG Hi
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to under-perform the FSPG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Baoshan Iron Steel is 2.48 times less risky than FSPG Hi. The stock trades about 0.0 of its potential returns per unit of risk. The FSPG Hi Tech Co is currently generating about 0.73 of returns per unit of risk over similar time horizon. If you would invest 488.00 in FSPG Hi Tech Co on August 25, 2024 and sell it today you would earn a total of 523.00 from holding FSPG Hi Tech Co or generate 107.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Baoshan Iron Steel vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Baoshan Iron Steel |
| FSPG Hi Tech |
Baoshan Iron and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and FSPG Hi
The main advantage of trading using opposite Baoshan Iron and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, FSPG Hi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co |
| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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